Published on August 1st, 2019 | by The GC Team0
Shop price deflation stable in July
July Shop Price deflation was steady at -0.1% in July which, similar to last month, was driven by a decline of 1.2% in non-food prices. It was the second consecutive month of deflation since October 2018.
According to the BRC, technological developments have been contributing to the long-term decline of prices of Electricals and Clothing & Footwear, while low consumer confidence has kept shoppers from “splashing” on discretionary items.
“Given the competitive environment, retailers are, on average, using price discounts to attract customers,” the organisation said. “Many consumers will be pleased to see the price of non-food products continuing to fall at a steady rate,” Chief Executive Helen Dickinson commented.
Mike Watkins, Head of Retailer and Business Insight at Nielsen, said he anticipates that non-food retailers would be looking to keep any price increase to a minimum over the next few months as shoppers continue to be cautious around their retail spend.